Intel has announced 128 job cuts at its headquarters as part of an employee restructuring plan announced last month,media reported, as CEO Steve Sr. said it would optimize resources and eliminate some of its less-prioritized businesses. Intel employs about 118,000 people worldwide, and after last month’s earnings meeting, Intel CEO Mark Sr. announced a new round of reforms that will be adjusted in 2020, with some projects less prioritized, so layoffs are not going to work.
According to Intel’s official account, the rate of layoffs is no more than 1%, or about 1,100 of the affected employees, which is not a big job cut compared to the total.
Intel said it would continue to recruit key talent around the world as it cut jobs, with more than 1,300 new jobs expected.
Intel’s headquarters in Santa Clara, which employs about 8,400 people, is still symbolic, after all, the staff at the headquarters is moving, meaning Intel is going to play with the reform.
It is not known which business units will be covered by the job cuts, but Intel’s advanced technology division is clearly not. According to The Reibo’s previous statement, the 10nm capacity has exceeded expectations, with nine 10nm products in 2020.
On January 24, Intel reported 2019 Q4 revenue of $20.2 billion, up 8 percent from a year earlier, and net profit of $6.9 billion, up 33 percent from a year earlier (compared to AMD’s $1.8 billion in Q3 revenue).
In addition, the results sent Intel’s shares up 7 percent to $63, giving it a market value of $275.4 billion, the highest since the dotcom bubble in 2000.